The Tasmanian and Federal governments are being urged to re-negotiate the $276 million deal to end most native forest logging in the state.
The Tasmanian timber industry says compensation payments to forest contactors are at risk after the state government announced Gunns has rejected a pay out offer for its forest rights.
Terry Edwards from the Forest Industries Association says the state and federal agreement does not clearly require payments to loggers if there is no settlement with Gunns.
“The governments are interpreting the agreement to mean that the monies don’t flow until there is a settlement”
Mr Edwards has called for the agreement to be re-written in order to clear-up confusion.
“They need to amend the inter-governmental agreement to ensure those monies commence to flow immediately.
“The monies should have started flowing to contractors immediately, a process was commenced between the State Government and Gunns,” he said.
“The uncertainty that’s pervaded the industry now for 18 plus months continues.
“It’s just not fair to have those small, independent contractors going to the wall, losing their houses, losing their livelihoods whilst this matter plays out.”
Ed Vincent from the Tasmanian forest contactors association says there is no reason under the terms of the agreement why contactors should not start to receive payments.
“A process has been entered into by the State Government, clearly that has been the case,” he said.
“There’s been an offer made, albiet a rejected offer at this point, but that means that this process has been entered into and on that basis clause 16 has been complied with.”
Gunns shares are in an indefinite suspension, pending a financial settlement under the forest agreement.
In a brief statement last night, the State Government announced Gunns had formally knocked backed the undisclosed offer and it was looking at alternatives.
The Greens forestry spokesman Kim Booth says Gunns’ rejection of compensation is no excuse to abandon the peace process.
“That $276 million should not be held up by Gunns holding everyone to ransom,” he said.
“This is obviously a blow to forest contractors, conservationists and the community.”
Tasmania’s Shadow Treasurer, Peter Gutwein, says the knock back is a body blow for the forest peace deal.
“The forestry deal was premised on locking up the trees once Gunns has handed back its contracts,” he said.
“Now that Gunns has rejected compensation for its contracts, the deal is obviously in tatters.”
A Gunns spokesman said last night the company would not be commenting on a process that is not complete.
